2000-24132 RESO
RESOLUTION NO. 2000-24132
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FISCAL YEAR
2000-01 OPERATING BUDGET FOR THE ELECTROWAVE SHUTTLE
SERVICE, IN THE AMOUNT OF $1,925,993; SUCH BUDGET FUNDING
THE OPERATION OF BOTH THE EXISTING WASHINGTON AVENUE
ROUTE PLUS THE NEW COLLINS AVENUE ROUTE; AND
APPROPRIATING A FUNDING PACKET WHICH INCLUDES $1,050,000
IN MIAMI BEACH PARKING ENTERPRISE RETAINED EARNINGS;
$300,000 IN CONGESTION MITIGATION AND AIR QUALITY FUNDS;
$139,993 IN FLORIDA DEPARTMENT OF TRANSPORTATION (FDOT)
FUNDS; $50,000 IN TRANSPORTATION MITIGATION FUNDS; $250,000
IN PROJECTED FARE COLLECTION REVENUES; $20,000 IN
PROJECTED ADVERTISING REVENUES; AND APPROXIMATELY
$116,000 IN CARRY-OVER FUNDS FROM THE FDOT/JOINT
PARTICIPATION AGREEMENT FOR THE ELECTROW A VE PROJECT.
WHEREAS, the Electrowave Shuttle Service has been in operation since January 1998, and
has carried over 3 million passengers in its 32 months of service; and
WHEREAS, in addition to the existing Washington Avenue route, the City wishes to
provide a new route, serving Collins Avenue, from 16th Street to 23rd Street; the Cultural Campus;
the Garden Center; the Holocaust Memorial; and the Miami Beach Convention Center; and
WHEREAS, the proposed Fiscal Year 2000-01 Electrowave Operating Budget provides
funding for both routes, which will operate II vehicles; 9 in route service and 2 in rotation service,
for a total operating cost not to exceed $1,925,993; and
WHEREAS, the City is being asked to contribute $1.05 million in Miami Beach Parking
Enterprise Retained Earnings, or 54.52% of the $1,925,993 proposed E1ectrowave Operating Budget;
and
WHEREAS, the additional 45.48% in funds will come from $139,993 in new Florida
Department of Transportation funds; $300,000 in Congestion Mitigation and Air Quality funds;
$50,000 in Concurrency Mitigation funds; $250,000 in projected fare collection revenues; $20,000
in projected on-board advertising revenues; and approximately $116,000 in FDOT/Electrowave
budget carry-over funds.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby adopts the Fiscal Year 2000-01 Operating Budget for the Electrowave shuttle
service, in the amount of $1,925,993; such budget funding the operation of both the existing
Washington Avenue Route plus the new Collins Avenue Route; authorize the appropriation of a
funding packet which includes $1,050,000 in Miami Beach Parking Enterprise Retained Earnings;
$139,993 in Florida Department ofTransportation (FDOT) funds; $300,000 in Federal Congestion
Mitigation! Air Quality funds; $50,000 in Concurrency Mitigation funds; $250,000 in projected fare
collection revenues; $20,000 in projected advertising revenues; and approximately $116,000 in
carry-over funds from the FDOT/Joint Participation Agreement for the E1ectrowave Project.
PASSED AND APPROVED this the 18th day of
October
,2000.
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CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
, http:\\cLmiami-beach.fl.us
CITY OF MIAMI BEACH
TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM NO.
801-00
Mayor Neisen O. Kasdin and
Members of the City Commission
DATE: October 18, 2000
Jorge M. Gonzalez
City Manager
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A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FISCAL YEAR
2000-01 OPERATING BUDGET FOR THE ELECTROWAVE SHUTTLE
SERVICE, IN THE AMOUNT OF $1,925,993; SUCH BUDGET FUNDING
THE OPERATION OF THE EXISTING WASHINGTON A VENUE ROUTE
PLUS THE NEW COLLINS AVENUE ROUTE; AND APPROPRIATING A
FUNDING PACKET WHICH INCLUDES $1,050,000 IN MIAMI BEACH
PARKING ENTERPRISE RETAINED EARNINGS; $300,000 IN
CONGESTION MITIGATION AND AIR QUALITY FUNDS; $139,993 IN
FLORIDA DEPARTMENT OF TRANSPORTATION (FDOT) FUNDS;
$50,000 IN TRANSPORTATION MITIGATION FUNDS; $250,000 IN
PROJECTED FARE COLLECTION REVENUES; $20,000 IN PROJECTED
ADVERTISING REVENUES; AND APPROXIMATELY $116,000 IN CARRY-
OVER FUNDS FROM THE FDOT/JOINT P ARTICIP ATION AGREEMENT
FOR THE ELECTROW AVE PROJECT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution,
ANALYSIS
The Electrowave Circulator Shuttle Service has been in operation for 32 months (since January 20,
1998), and has become an undeniable Miami Beach success story, operating a short Washington
Avenue route and carrying over 3 million passengers to date. Approximately 20% of these
passengers either leave their cars at home or in public garages/lots and use the park-and-ride
program. A fully functional and effective local circulator is essential to urban communities such as
Miami Beach, for the following reasons:
(; It allows the City to meet concurrency requirements. As a matter of fact, the City has
recently adopted a Transportation Concurrency Management Area (TCMA) method to
achieve concurrency, which largely depends on the availability of public transit services.
(; It helps reduce traffic impacts on the City's limited roadway network which, in places, is
already at capacity or beyond capacity.
AGENDA ITEM 12-' r
DATEjO-l8"-OO
October 18, 2000
Commission Memorandum
Proposed Electrowave Budget
Page 2
o It allows for continued economic viability and quality redevelopment; and
o It is an essential component of a comprehensive parking and transportation system.
No transit system worldwide is self supporting (excepting the San Francisco Trolley and the Tokyo
subway system). A fully functional and effective local circulator service is expensive to operate and
requires full commitment on the City's part to its continued operations and funding. Small,
independent circulator services such as the Electrowave do not have either the infrastructure and fleet
size needed to generate substantial recurring revenues, or the outside funding opportunities that full-
scale transit agencies command, due to the extent of the services provided.
As well known throughout the transit community, capital funds for the purchase of buses and bus
related equipment/facilities are available on a continued basis. Operating funds, however, be it
from State or Federal sources, are available only for the first three (3) years of operations of
an individual route service. This means that, from January 20, 2001 (the 4th anniversary of
the Electrowave service), the City has to have the will to create and provide the recurring
funds needed to operate the existing route service. Federal and State funds will be available,
through annual application, for the first three (3) years of operations of the new Collins Route, the
City proposes to implement as of November 2000. We offer the following as examples of the
statements made above:
I. As of today, $2 million in Federal Transit Administration (FTA) Section 3 capital funds
are earmarked for "bus and bus-related facilities" for the Electrowave, and an additional $2.8
million is forthcoming. These funds have yet to be appropriated by the City, because, the
more buses we buy the larger our operating costs become. Recently, $866,858 in FT A funds
were utilized to purchase and outfit four new shuttle vehicles for the Collins A venue service,
which is proposed to begin in November 2000. In addition, $50,000 in FT A funds are being
utilized to retrofit a mechanical bay into an auxiliary charging facility for the shuttle
batteries.
2. For the first three years of Electrowave route service, the Florida Department of
Transportation (FDOT) has been the City's main funding partner ($2 million), reimbursing
the City for over $1.5 million of the operating costs through June 2000. The City has yet
to submit its last quarter (July-September) invoice. For FY 2000-01, FDOT's new
contribution is $139,993 plus a carry-over amount from previous budget years, estimated
at $116,000. There will be no FDOT carry-over funds in FY 2001-02.
3. The only Federal source of operating funds is the small Congestion Mitigation and Air
Quality (CMAQ) Program, which helps fund the first three years of operations of a NEW
route only. The Electrowave has been granted $300,000 in CMAQ funds to operate the new
Collins Route in FY 2000-0 I,
4. The only recurring funds that the Electrowave Project has been able to generate so far are
approximately $210,000 in revenues from a 25-cent fare collection, and approximately
$9,000 in revenues from on-board advertisement. These funds are not expected to increase
substantially through the years, unless the fare itself is increased.
October 18, 2000
Commission Memorandum
Proposed Electrowave Budget
Page 3
In previous years, the City contribution to the Electrowave Program came from the Resort Tax Fund.
In FY 2000-01, we propose to utilize Parking Enterprise Retained Earnings. The Administration
believes this to be an appropriate use of these funds, since the private automobiles cause congestion
on City streets, while the park-and-ride program helps alleviate congestion and improve mobility.
The proposed funding sources for the FY 2000-01 Electrowave Operating Budget are as follows:
1999-00 M. B. Parking Enterprise Retained Earnings $1,050,000 (new source)
Federal Congestion Mitigation! Air Quality Funds 300,000 (Grt.# FM25351518401)
New FDOT contribution 139,993 (FDOT's JPA #4,9/13/00)
Concurrency Mitigation Funds/South Beach 50,000 (Acct. 158.8000.341226)
Projected Fare Collection Revenues 250,000 (recurring funds)
Projected on-board advertising revenues 20,000 (recurring funds)
Estimated Project carry-over funds 116.000 (FDOT funds, JP A #3)
Proposed FY 2000-01 funding total: $1,925,993
Actual 2000 Costs vs. Proposed 200] Budget. The actual operating cost of the Washington Route
(existing service) during FY 1999-00 is estimated at approximately $1.5 million. The proposed
budget for the Washington Route plus a new Collins Route during FY 2000-01 is $1,925,993, after
undergoing two rounds of budget cuts, at $307,016, as follows:
\) The first cut reduced a costly Red Top budget proposal for FY 2000-01 by $208,016. In
order to achieve the final $990,955 proposed cost, the City had to reduce the number of
hours and vehicles operating late-night service, and eliminate ALL special services. From
October 1, 2000 on, those events wishing special shuttle services will have to pay for them.
\; The second cut reduced the remaining budget categories by $99,000.
A comparison between the present and proposed operating budgets is herein provided:
Washington Route Wash&Collins
FY 1999-00 FY 1999-00 FY 2000-01
Expenditure Categories Budget Cost Project. Proposed Budget
11 vehicles 7 vehicles 11 vehicles
Red Top Contract $ 903,296 $ 830,000 $ 990,955
Fleet Maintenance Charges 600,000 400,000 542,416
Uniforms for Shuttle Drivers 7,000 5,000 8,000
Miscellaneous Operating Expenses 70,000 40,000 65,000
Electricity to Charge Batteries 50,000 28,000 45,000
Telephone 200 200 500
Project Administration Contract (MBTMA) 99,250 95,250 99,250
Information Services (Marketing) 50,000 16,000 36,000
Communication (radios for shuttle vehicles) 30,000 25,000 30,000
Robinair Equipment One Forklift (capital) 21,000 -0- 21,872
Insurance on 11 Shuttle Vehicles 87,000 87,000 87,000
Contingency 12,254 -0- -0-
-------------- -------------- --------------
FY Budget Totals: $1,930,000 $1,526,450 $1,925,993
October 18, 2000
Commission Memorandum
Proposed Electrowave Budget
Page 4
The proposed 'Enhanced' Route to Collins Avenue was not implemented in FY 1999-00 as
envisioned, for the following reasons: the four new shuttle vehicles were not ready for service
until recently, and the $300,000 in CMAQ funds was withdrawn until the City changed the
increased service from 'enhanced route' to a new, separate Collins Route.
As previously stated, the service provided by the Electrowave is highly beneficial to South Beach
as a community, Miami Beach as a whole, and to South Florida, as evidenced by the following facts:
\) The original seven 22-passenger buses have carried over 3 million passengers to date, or an
average of 25,000 per week during the tourist season and 15,000 per week in the off-season.
A survey of shuttle riders being finalized by the Chesapeake Group for the Miami Beach
Transportation Management Association (MBTMA), indicates that South Beach residents,
employees, and students are the predominant users of the service during summer months and
daylight hours, while tourist and visitor ridership occurs mostly in the winter season,
particularly during evening/night hours. In addition, approximately 20% of the shuttle
customers utilize the park-and-ride method.
\) Additionally, the new Collins Route will become an essential element of the traffic
mitigation effort being established by the City for implementation during three (3) Collins
Avenue roadway projects, that FDOT has scheduled to take place in South Beach in 2001,
2002, and 2003, respectively.
\) The cities of North Miami Beach, Coral Gables, Hialeah, Miami (downtown), Coconut
Creek, Fort Lauderdale and Tampa, are implementing local circulator services, pursuant to
the success of Miami Beach's bold experiment in clean-air and fuel-efficient transit. These
new local circulators are competing with the Electrowave for the funds available at the
State and Federal levels.
Existing sources of recurring funds to date:
\) Additional farebox revenues to be collected by the new Collins Route. Due to the number
of hotel rooms being added to the Collins Avenue corridor, from 16th Street to 23rd Street,
plus the addition of the Cultural Campus, Convention Center, Garden Center, and Holocaust
Memorial customers, fare collection proceeds could increase, particularly during the tourist
season, due to conventions and other events being held in and around the area.
\) The back windows of the 11 shuttle vehicles have already been sold for advertisement by
private companies throughout the upcoming fiscal year, at $20,000.
October 18, 2000
Commission Memorandum
Proposed Electrowave Budget
Page 5
Recurring funds could also be generated by initiatives which would require Commission approval:
<> Increased revenues from concurrency mitigation funds being collected and administered by
the City's Transportation/Concurrency Management Division. An interest-bearing
endowment account for Electrowave and TCMA purposes should be created to capture fund
allocations from various local sources.
<> Elimination of the existing parking impact fee to impose, instead, a transit impact fee that
would serve both transit and park-and-ride purposes, also in connection with the creation of
TCMAs.
<> Implementation of benefit assessment districts in connection with the creation of
Transportation Concurrency Management Areas (TCMA), or "urban transit villages."
Potential recurring funds via a potential partnership with MDT A:
<> As a potential initiative of the Mayor/City Commission, the City could attempt to negotiate
a creative and functional partnership with the Miami-Dade Transit Agency (MDTA), that
would include the restructuring of the transit routes serving Miami Beach, and possibly
creating an additional source of recurring funds for our own local circulator. Such initiative,
however, would introduce union labor and increased costs to Electrowave operations.
<> Last, but not the least, the Electrowave's annual pro-rata share ofthe National Transit Data
Fund, which, technically, should have been available to the City on an annual basis,
subsequent to January 20, 2000, when the Electrowave Service became two-years old. The
amount and payment ofthis annual bonus for creating additional transit ridership in Miami-
Dade County has yet to be determined by MDTA. According to MDTA officials, the
potential amount is too insignificant to justify the work it will require from the County staff.
Long Range Plan for Electrowave. On September 21, 2000, the Metropolitan Planning
Organization (MPO) awarded $40,000 in grant funding, matched with $10,000 in Parking Enterprise
Retained Earnings, for the City to develop a Long-Range Plan for the Electrowave Shuttle Service.
On November 8, 2000, the Administration intends to seek City Commission authorization to issue
Requests for Qualifications (RFQ) for the development of this long-range plan, which will help the
City Officials' decision-making process regarding acceptable levels of City funding obligations and
extent of transit services to be provided.
Status oftransit fare collections. Since the 25-cent fare was implemented on July 1, 1999, the
City has collected over $200,000. Eventually, with the implementation of the Collins Route, this
amount may increase by 30% or more, In October 1999, Miami-Dade County implemented a county
wide "Gold Passport" Program which affords free rides for senior citizens, above and beyond the
"Special Transportation System (STS)" card which affords free rides for the disabled. Since then,
the shuttles carried over 127,000 of such riders, losing over $32,000 in fare revenues.
October 18, 2000
Commission Memorandum
Proposed Electrowave Budget
Page 6
It is undeniable that public transit is essential if the City is to achieve the goals and meet the
challenges of a turn-of-the-Century Miami Beach. The Administration recognizes the merits ofthe
Electrowave service and is optimistic about the prospects for creating recurring sources of local
funds, The Administration recommends approval of the Resolution.
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